2022 (9) TMI 1397 - AT - Income Tax

Denial of foreign tax credit u/s 91 - delay in filing Form no.67 - Rule procedures directory or mandatory - inadvertent mistake in complying with the procedural requirement of filing of Form No. 67 with the Return of Income - HELD THAT:- We find under Section 90 of the income tax Act allows double taxation relief in respect of agreements with foreign countries or specified territories and also Section 91 deals with the taxability of income where the countries which don’t have agreements. Further there is no amendment in the Section 90 of the Act with regard to claim of FTC and in such cases Rule procedures are directory and not mandatory.

As in the case of Ms. Brindra Rama Krishna, [2022 (2) TMI 752 - ITAT BANGALORE] for assessment year 2018-19 has observed that the filling of FormNo.67 is not mandatory but directory.

As there is no amendment on these aspects in the Section 90 of the Act and the Rules cannot override the Act and therefore the filing of Form.No 67 is not mandatory but it is directory. Accordingly, We restore the disputed issue to the file of the CIT(A) to adjudicate afresh on merits considering the observations in above paragraphs and the ratio of judicial decisions. Further the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of appeal and allow the grounds of appeal of the assessee for statistical purposes.